What Are Credit Reports?

• Credit reports display the history of a credit consumer. These reports show information such as past borrowing and late payments. Credit reports are an important tool for monitoring and repairing your credit history. Viewing your reports does not negatively impact your credit in any form. If you are denied any form of credit, you can request a copy of your reports free of charge. With these reports, you can dispute mistakes and find out what forms of past debt you must pay off.
  
  

Negative Credit Actions

• A variety of actions can affect your credit history. The worst action is not paying bills on time and allowing them to go into collections. This will hamper any chances of receiving future credit lines. Applying for new credit lines can also hurt your credit, especially if these applications are denied. Have any mistake quickly corrected. Be wary of using credit clearing companies as well, because this may appear as a bankruptcy on your credit reports, which will stay with you for 10 years.
  
  

Positive Credit Actions

• While it takes time and can be difficult, it is possible to repair your credit history. First, pay any bills that you have on time, even if that means just making the minimal payments. If you have any credit cards active, keep their balance low to maintain a high percentage of accessible credit. Do not close out these accounts, as having a very low balance actually has a better effect on your status. Pay off any past debt as quickly as possible, starting with bills for small amounts.
  
  

Avoiding Identification Fraud

• Identification fraud is a criminal act that can affect people without their knowledge. ID fraud is when a criminal steals the personal information of an individual, then uses that information to make fraudulent purchases. It's very difficult to reverse the effects of this crime, thus making it much more imperative to protect yourself before it happens. For example, do not give out personal information such as your Social Security number to online vendors or over the phone. Another step is to avoid displaying too much personal information on social sites such as Facebook. If you believe you have been affected, contact the authorities, your bank and your credit vendors quickly.
  
  

Other Information

• Classes on how to use your credit reports and a better understanding of them are offered at various locations. Companies such as Fidelity and other financial institutions offer seminars on how to repair your history. Research your local area to find opportunities to learn more about using your credit reports.